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>Recognising that most people lose their risk capital in the futures market,
>I want to start with a very small stake (maybe $3,000). Yes, I know it gives
In my opinion, the only way to make money reliably n futures with
an account that small is to sell naked options on futures. My
spreadsheet at http://unicorn.us.com/trading/optsel2a.zip has
detailed documentation on a working strategy for doing this.
>My question is, which market(s) should I focus on with such a small stake. I
When selling naked options you are only limited by how much margin a
futures contract costs.
>think I will need to set very low hard dollar stops (say, no more than
>$500), so I can't trade markets that are likely to stop me out on the day of
With $3000, you do realize that 6 $500 losses in a row will wipe you
out. Your broker will not allow you to trade anymore when your account
size drops below the initial margin requirement for a contract, which is
about $1000 or more, less for grains.
You must ask yourself, what can you REALLY learn from a mere 6 losses?
Far better to have a strategy like I recommended above, that allows you
to last longer and at least make money doing it.
--
,|___ Alex Matulich -- alex@xxxxxxxxxxxxxx
// +__> Director of Research and Development
// \
// __) Unicorn Research Corporation -- http://unicorn.us.com
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